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Why Peloton Expects to Earn Twice as Much in 2021
A year after its infamous Christmas ad was torn apart by internet commenters, the fitness startup is having the last laugh
$3.9 billion: That’s the total revenue Peloton expects to earn in 2021 — nearly twice as much as it earned in 2020. In November, the at-home fitness startup reported eye-popping year-over-year sales growth: 232% for the first quarter of its 2021 fiscal year.
This surge in sales occurred less than a year after the release of Peloton’s now-infamous Christmas ad, featuring a woman whose partner gifts her a Peloton bike for Christmas. The commercial was torn apart by internet commenters and critics mocking the woman’s pain-stricken expressions and perceptions that the partner’s “gift” was effectively shaming her to exercise more. The company lost $1.5 billion in value the first week of December 2019 as shares fell in response to the ad’s backlash — but now, it’s Peloton who has the last laugh.
Despite heavy competition from home fitness startups like Mirror and Zwift and tech behemoths like Apple entering the digital fitness market, Peloton took full advantage of the once-in-a-generation opportunity afforded by lockdowns, gym closures, and the widespread…
